Increased spending on which of the following items is most likely to increase the size of government during the years following 2012?
a. education
b. Social Security and Medicare
c. agricultural subsidies
d. transportation (roads and airports)
B
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The United States imports cheese from a variety of countries. The table above gives the domestic supply of, and demand for, cheese in the United States. The world price of cheese is $12 per pound, and trade is unrestricted
a. How many pounds of cheese are consumed in the United States? b. How many pounds of cheese are produced in the United States? c. How many pounds of cheese are imported into the United States? If a $3 per pound tariff is imposed, d. How many pounds of cheese are consumed in the United States? e. How many pounds of cheese are produced in the United States? f. How many pounds of cheese are imported into the United States? g. How much will the U.S. government collect in tariff revenue? h. Who benefits from the tariff? Who loses?
If a regulatory agency forces a natural monopolist to stop charging monopoly prices and start charging competitive prices,
a. taxpayers will have to subsidize the firm b. price will fall below AVC c. the monopolist will shut down d. stockholders will benefit e. quantity produced will increase
An increase in a family's income will cause its budget line to
a. become steeper. b. become flatter (less steep). c. move closer to the origin. d. move away from the origin. e. become more convex toward the origin.
Refer to the graph shown. If market price decreases from $7.00 per unit to $6.00 per unit, a profit-maximizing perfectly competitive firm will:
A. decrease output from 850 to 750. B. produce 850 units of output. C. increase output from 650 to 750. D. continue to produce 850 units.